Line 1 of your NYS tax return should come from the wages and salaries you reported on your federal tax return. This information comes from box 1 of your W-2. Box 1 of your W-2 will already have excluded section 132 benefits from income, so you won't need to subtract it again.
To make sure that these benefits weren't included in box 1 of your W-2, you can review your paystubs or contact your payroll department for verification.
